Economist Larry Kudlow said Hillary Clinton’s new tax proposal is “dumb”. He didn’t mean she was dumb, but rather that her economic proposal is uninformed at best.
Larry was an economic adviser in the Reagan administration during one of our nation’s strongest periods of economic growth and employment. He knows what he’s talking about and shares his views on ABC radio every Saturday from 10 AM to 1 PM.
By increasing the cost, risk, timing, and sluggishness of capital investing – as Hillary is proposing – the USA will get less investing and less investment turnover. This will damage our economy and reduce job creation and overall prosperity.
Active stock and bond markets protect investors, innovators, entrepreneurs, insurance and investment enterprises, and citizen interests. Enlightened free-enterprise societies have active markets, which decentralize economic and business control and risk. Thus, people and financial institutions are willing to invest in promising enterprises knowing full well that they can quickly exit a commitment if it goes sour and⁄or if a better opportunity arises.
Without that kind of confidence, the public would restrict its investments to sure things. Innovation and entrepreneurialism − the cornerstone of America’s historic, economic prosperity and job growth – would be seriously diminished.
Like Obama and many Dems and Leftist Progressives, Hillary apparently doesn’t understand the importance of viable, high-velocity, stock and bond markets. Obama raised taxation on investors after becoming President and thereby curtailed economic growth and job creation during the past seven years. Now Hillary – always on the coattails of others – promises to double down on Obama’s strategy, in the hope that an uninformed media and public will be attracted by this populist action.